Staying Private for Longer, 2.0?

Boardroom Governance Newsletter #37 | February 9, 2023.

In October of 2020, I wrote a post titled “The End of SPL in Silicon Valley?” at a time when startups were going public at a record pace via IPOs, SPACs and direct listings. M&A was also soaring, “it was the busiest summer for blockbuster deals in three decades,” according to the FT.

Prominent VCs such as Bill Gurley, Keith Rabois and Chamath Palihapitiya (who led the SPAC movement, and was referred to as “The Pied Piper of SPACs” or the “SPAC King”) were all complaining about how the mantra of SPL (Stay Private for Longer) had been the worst advice in Silicon Valley, and that the transition to public companies was necessary (Tobi Lutke from Shopify probably encapsulated it best by stating: “Being public and trusted is the best possible state for a company.”)

Fast forward to 2023, and the scenario has changed quite drastically. Public markets have almost shut down for tech unicorns and venture-backed companies. But according to CB Insights, there are still 1,210 unicorns globally value…